Suppose you observe that the demand for good X decreases when the price of good K decreases. You know that: A.X and K must be complements in consumption. B.X and K must be substitutes in production. C.X and K must be substitutes in consumption. D.X and K must be complements in production.

Suppose you observe that the demand for good X decreases when the price of good K decreases. You know that: A.X and K must be complements in consumption. B.X and K must be substitutes in production. C.X and K must be substitutes in consumption. D.X and K must be complements in production.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose you observe that the demand for good X decreases when the price of good K decreases. You know that:
A. X and K must be complements in consumption.
B. X and K must be substitutes in production.
CX and K must be substitutes in consumption.
D.X and K must be complements in production.

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